Join Today
Results 1 to 5 of 5
  1. #1

    Tax relief in a SIPP - Clarification required.

    Hello all, let's say my wife has a salary of GBP 15000.

    She and her employer pay a total of GBP 3000 into her occupational pension. So, she has GBP 12000 relevant earnings she could put in a SIPP. The personal tax allowance is GBP 11000. But, I believe that if I give her GBP 12000, she could put all of that into a SIPP and get a 20% uplift on all of it?

  2. #2
    Use this calculator.

    http://www.hl.co.uk/pens...=12000&salary=11000

    Also bear in mind that within an occupational pension scheme employee contributions are deducted gross of tax from gross salary.

  3. #3
    Thanks, yes I know that. What I am saying basically, is we can invest a sum equal to her net salary as shown on the P60.

  4. #4
    She can make total pension contributions up to her gross salary, provided that those plus employer contributions do not exceed 40K.

    As she has put in 3K, that leaves her 12K Gross (i.e including the 20% uplift) to put in a SIPP. So the answer is no, she can only put in 9600 cash.

    Make sure you keep good records as HMRC may query this as it is unusual for someone to put their entire salary into a pension.

  5. #5
    we can invest a sum equal to her net salary as shown on the P60.


 

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •